Looking to invest in 2019? Why It Pays to Buy Off-Plan

In the recent past, you may have heard about the word ‘off-plan model’ in the real estate market. What does it actually mean and how is it different from normal developments? Why should investors and first-time buyers take an interest in the model?

Off-plan is a model where a property is sold before the construction is completed. Since the market has recovered from the 2008-09 financial crisis, a lot of developers in Dubai have initiated a lot of projects that are expected to be completed by 2021.

Even though buying a property that has not been completed sounds risky, the benefits outweigh the risks. Here are the reasons why you should invest in off-plan properties in Dubai.

  1. Low Price

The overall price of an off-plan property in Dubai is lower than a ready-to-move-in property. Every month, there is an abundance of ambitious projects announced at different parts of the city. In addition, due to the competition in the market, developers are competing on price with others offering very affordable and friendly payment plans. Investors should take advantage of these ambitious projects offered at a lower price.

  1. Highly regulated market

The government of Dubai through the Real Estate Regulation Authority (RERA) and the Dubai Land Department (DLD) has implemented strict regulations that are meant to protect investors from losing their money.

Developers are required to completely own the land where the property is located. Also, payments made to the developer are protected under ESCROW held by the DLD. The developer is only allowed to use 5% of the money for marketing purposes while the rest of the funds are only allowed after it has been certified that the project has reached the required construction stage.

  • A wide range of options

There are many projects that are offered off-plan which leaves investors spoilt for choice. These projects are placed at different parts of the city and available at varied prices. There are several options for those that want to invest within the central city or in the outskirts.

  1. Capital gains

One of the biggest advantages of investing in off-plan properties is capital gains. The market value of most properties increases once they are completed. Those that invest in off-plan properties enjoy a high return on investment (ROI) because of the increased value.

Emaar Properties has been at the forefront of selling off-plan properties in Dubai. The Dubai Creek Beach Apartments is one of their biggest projects that is expected to be completed soon. It is located at the Dubai Creek Harbour which is a top investment location in Dubai.